Whatfix unveils its very first Esop buyback program

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Digital adoption solutions platform Whatfix, which raised $ 100 million from SoftBank-led investors last month as part of its Series D cycle, announced its first-ever share buyback program of employees (Esop) in the amount of 4.3 million dollars (Rs 32 crore).

All current and former employees will be able to liquidate up to 35% of their Esops acquired under the buyout.

The price per share will be the company’s undiscounted valuation of around $ 600 million at the time of its Series D, a senior company executive said.

This means that the price offered to the employee per share will be the same at which it was sold to the investor entering the Series D round.

Typically, companies buy back shares from employees at a discount.

“Of the 175 employees eligible for the buyout, only around 35 have chosen to benefit from it. This is because the employees believe in (the company’s) growth and would like to stay invested, ”Khadim Batti, Managing Director of Whatfix told ET in an exclusive interaction.

In June, the company raised $ 90 million in primary capital, while a small portion ($ 10 million) was spent on secondary transactions.

In February of last year, Whatfix raised $ 32 million in a Series C funding round led by Sequoia Capital India. Its other investors are Eight Roads Ventures, Cisco Investments and F-Prime Capital.

Founded by Vara Kumar and Batti, Whatfix provides companies with performance advice and support for web applications and software products.

It helps businesses provide easy onboarding, training, and self-service support. The company said last year that its products have helped customers increase employee productivity by 35%, reduce training time and costs by 60%, and increase application data accuracy by 20%. .

Whatfix joins a large number of companies that have announced the acquisition of Esop, providing wealth building opportunities for staff.

Companies such as Udaan, Flipkart, Cred, Oyo, Unacademy, Meesho, CarDekho, Razorpay, Swiggy, Byju’s, Moglix, Cars24, MPL, Firstcry, BharatPe, Pharmeasy and Zerodha have made Esop buyouts over the past three years .

The data shows that the Indian start-up sector has emerged as a net winner of the C-Suite moves, as a growing possibility of wealth creation, a growing number of liquidity events and the increase in Esop buyouts over the course of the past year have attracted CXO talent from large companies to start. UPS.

Large companies accounted for 69% of Tech C suite exits and 63% of non-tech C suite exits, according to a survey of 200 companies by specialist recruiting firm Xpheno, shared exclusively with ET.

The start-up sector has become the net winner of both tech and non-tech C-Suite moves, ET reported last month.

Batti said the company will announce buybacks more often to help employees build wealth and feel rewarded.

“We would like to do it more frequently and not necessarily align it with fundraising cycles,” he said.


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